Chapter 196: Counterattack in the making
To be honest, if there is capital infiltration from a certain nationality behind the scenes, no matter what the purpose of this capital is, Sheffield will instinctively feel uncomfortable, especially since Texas is adjacent to Mexico. As a neighbor of Mexico, which is just across the border, he naturally hopes for stability above all else.
Instability is fine, but it can't become a place where everyone is a drug dealer. If that happens, Texas will inevitably be affected. How great would it be if Mexico was next to the northern states? Sheffield doesn't mind a source of chaos affecting others, the key is not to affect himself.
Although Mexico in the late 19th century was in chaos, it was not as chaotic as later times. Later Mexico was not a group of drug dealers fighting against the government, which would be somewhat insulting to the Mexican private armed forces. They were just a group of real warlords who raised funds through drug trafficking. It was a quasi-civil war state, a weakened version of the Republic of China.
It was still a long time before the United States used means to subdue Mexico, the defeated enemy. Although Mexico was cut into pieces by the United States in a war, with only sand left, Mexico's spirit was still there. The time when its spirit was defeated was almost the same as the time when the trend of the Cold War became clear.
Reagan became the president of the United States and launched a desperate counterattack against the Soviet Union, but the price he paid was not only the bloodletting of Japan and Germany. Mexico, as a neighboring country next to the United States, also became a major target for the capitalist beacon to release pressure.
Therefore, before the Soviet Union recognized the neoliberal economics, the neoliberal economics was first introduced to Mexico. In order to pay off its debts, Mexico began to promote large-scale privatization of industry and agriculture; attract foreign investment in exchange for funds to repay debts; at the same time, it also abolished protective tariffs and agricultural credit subsidies on most agricultural products in order to join the North American Free Trade Agreement and expand exports to the US and Canadian consumer markets.
The United States then used its economic superiority over Mexico to first use the treatment it had given Mexico to see what effect it would have on the Soviet Union, and the results were quite surprising.
What happened a hundred years later has nothing to do with Mexico's current debt, but it can be used as a reference. Even Sheffield does not believe in the integrity of financial capital. If Morgan really seizes Mexico, the United Company seems to be in a passive position.
"How can I allow others to sleep soundly beside my bed!" Sheffield said coldly.
"William, what did you say?" A big question mark appeared on Rockefeller Jr.'s head. What language did the other party just speak?
"It's an oriental proverb. I myself hold a bachelor's degree in history from the University of Texas at Austin." Sheffield fiddled with his fingers, but boasted in his brain. Boasting had become a habit for Sheffield.
After boasting, he naturally thought about whether it was worth it to get ahead of Morgan. If it weren't for Rockefeller Jr. using his connections in the financial industry, Sheffield would not have known about this at all...
Sheffield came out of his thoughts, blinked at Rockefeller Jr., and asked with gritted teeth, "My dear partner, why did you tell me this? What's your intention? You came all the way to remind me to be careful of Morgan? Should I thank you?"
Why would Rockefeller Jr. bring this up on his own initiative, even when he was eyeing Cuba, and come directly to the door? Out of friendship for a partner? Who would believe this excuse?
"Of course, it's a counterattack against financiers who are entering the real economy!" Rockefeller Jr. did not hide his intentions, and did not defend himself after being questioned by Sheffield. "As a financial banker, the Rockefeller family believes that the Morgan father and son are overreaching. In fact, this is also the consensus of many companies. We hope that the actions of the Morgan father and son will be stopped, but in the current domestic environment, our Rockefeller family dare not act rashly. Standard Oil is fighting against the antitrust law almost every day. The goal itself is already too big. Of course, because of the cooperative relationship with United Oil, some of the pressure to fight against the antitrust law has been transmitted to United Oil."
"Should I thank you for your reminder?" Sheffield interrupted with a bad look. However, this was a matter of mutual consent. It was Rockefeller who took the initiative to seek cooperation, and he also hoped to tie down a powerful ally in the North. The risks were shared by both sides, and there was no question of who was at a disadvantage or who was at an advantage.
"No need to say thank you!" Rockefeller Jr. waved his hand. He was able to gain an ally like United Oil to fight against antitrust laws, but he also tried his best to remind United Oil to pay attention to the actions of Morgan and his son. In the environment where domestic antitrust laws are the biggest target, Standard Oil naturally dared not act rashly.
Sheffield understood this, and then came another major topic. "Standard Oil is not threatened by antitrust laws in Mexico. Directly confronting the Morgan father and son in the steel industry will have too much impact. Besides, William, you also said that there are giants like Carnegie in the steel industry. It will not be a problem in the short term, so Standard Oil and United Company can make a light move in the country and occupy a certain share of the steel market without attracting federal antitrust investigators. Then invest the main funds in Mexico, where the environment of Standard Oil will not be restricted."
Wonderful! Sheffield also had to admire Rockefeller Jr.'s feint to the east and attack in the west, and praised him, "Otherwise, Uncle Rockefeller and old Morgan are the real opponents."
"Of course, it was my father's plan...Uncle?" Rockefeller Jr. suddenly paused, as if to say, "Don't take advantage of me." "My father and Madam Anna are contemporaries."
"It's the wrong name! Got it." Sheffield thought to himself, he didn't call him wrong. Although old Rockefeller and old Buddha were contemporaries, they didn't know each other. He and Edith Rockefeller were very familiar with each other, so he didn't call her wrong at all.
Little Rockefeller realized belatedly that Sheffield had tricked him into making a feint to the east while attacking in the west. It was not his intention but the instruction of his father.
What this means is that domestically, it was already very difficult for Standard Oil to consolidate its dominance in the oil industry due to the threat of antitrust laws. However, as a leader of industrial capital, Standard Oil naturally had its own financial power. Although not as strong as Morgan father and son, it was enough to do general things.
Mexico's debt problem can be used as a battlefield to fight back against the Morgan father and son's intervention in industrial entities.
"You should know more about Mexico than I do. What do you think about the prospects?" Rockefeller Jr. asked in a humble manner. Any financing needs to be profitable. If the prospects are not good, even if Standard Oil is a big company, it cannot throw money into the water just because it competes with the Morgan father and son.
Considering Morgan's keen response to such matters, Rockefeller Jr. thought it was no problem and that he could compete in a foreign country that was not subject to antitrust laws, but he was a little afraid that this was a trick. He came to ask Sheffield, who was a neighbor of the Mexicans.
"It shouldn't be a problem!" Sheffield thought for a while and said, although Mexico was defeated by the United States, it still has development potential. At this stage, it is far from reaching the upper limit of development. Moreover, once money is lent, certain assets must be used as collateral. Even the United Company, which was evaluated by Rockefeller Jr. as having zero financial accumulation, knows this basic operation.
Sheffield and Rockefeller Jr. looked at each other and said at the same time, "Let's do it." Since the Morgan father and son used the steel industry as a stepping stone to enter the industrial entity, Standard Oil and Union Company would intercept Morgan in Mexico.
Once this kind of bond is taken over, it is definitely not something that can be undertaken by two companies working together. In fact, most of the money Morgan used was not his own, but belonged to other allies or even ordinary citizens who thought it was profitable.
When it comes to Mexico's public debt, this matter is really more important to Sheffield. The headquarters of the United Company is in Texas. Although he has transferred some of his newly expanded industries to California, Texas will not be abandoned. This joint counterattack against Morgan father and son is in Morgan's area of expertise. It is not excessive to make plans carefully. This is not the ongoing Spanish-American War, and they will definitely win.
Unlike Morgan's superstitious credit in the financial industry, it was not easy to make a splash in a field that Union Oil was not good at, even with the help of Standard Oil. Moreover, the financial industry itself was an industry with very few authorities and the vast majority of scammers. There were too many scammers and not enough fools.
In order to find enough buyers, the United Company could use its appeal in the South. However, it would be better not to use this appeal. Once Mexico's public debt is taken over, under what name would it be issued?
The announcement must be made, although if it fails, Standard Oil and Union Company will have to bear all the losses, and the negative impact may cause the two young captains of giant ships to be questioned. Sheffield is more comfortable in this regard. Most of his industries are not listed, but the most important industry of the Rockefeller family is Standard Oil, which is not Union Company.
So even if Sheffield said that both companies could take over the Mexican bonds and bear all the profits or losses, Rockefeller Jr. would not agree. The models of the two companies were completely different, and he did not have as much freedom as Sheffield.
"Even if you think the prospects are good, you still have to find citizens to take over." Rockefeller Jr. shook his head vigorously, indicating that Sheffield was not playing with finance, but gambling.
(End of this chapter)
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